TY  - JOUR
T1  - Shariah Finance for Poverty Reduction in Muslim World
AU - Hossen Shaikh, Zakir AU - Kumar Mohanty, Malay 
JO  - International Business Management
VL  - 11
IS  - 3
SP  - 754
EP  - 760
PY  - 2017
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2017.754.760
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2017.754.760
KW  - Shariah compliant
KW  -micro-finance
KW  -poverty
KW  -eradication
KW  -Zakat and Waqf
AB  - Poverty is a multi-dimensional phenomena and a result of a complex socio-economic and political
structure of a particular country. It is associated with poor economies, poor human resources, poor social
services provision and poor policies to tackle the challenges facing human and socio-economic development.
The issue of "poverty eradication" and "access to finance "are important ends in Islamic economic
development, hence, the need to focus on a broader approach in evaluating the condition of people in Muslim
society. The main objective of this study is to explore the conceptual framework on the role of Shariah
compliant micro-finance to eradicate poverty. Use of risk-sharing financing instruments can offer
Shariah-compliant microfinance, financing for small and medium enterprises and micro-insurance to enhance
access to finance and redistributive instruments such as Zakat, Sadaqat, Waqf and Qard-al-Hassan complement
risk-sharing instruments to target the poor sector of society to offer a comprehensive approach to eradicating
poverty and to build a healthy and vibrant economy. The methodology of this study is based on analysis of
relevant theories. The findings of the study indicate that Shariah-compliant micro-finance is a growing market
niche with a comprehensive approach towards socio-economic justice. Zakat and Waqf institutions are requisite
for generating community assets, productive capacity building, wealth creation and knowledge and skills that
will enhance the technical standing of entrepreneurs. This approach towards poverty eradication of less affluent
Muslims before and since Shariah compliant finance was introduced.
ER  -